CIP divests 50% of its 1 GWh Coalburn 1 BESS in Scotland

Danish investment firm CIP has signed an agreement on behalf of its fund, Copenhagen Infrastructure IV (CI IV), to divest half of its stake in one of its Scottish BESS projects to French alternative investor Axa IM Alts.

Axa IM Alts will take over CIP’s 500 MW, two-hour duration, lithium-ion Coalburn 1 project, located in south Lanarkshire in Scotland.

The Danish firm initially invested in Coalburn 1 in December 2023, and it will continue to oversee its delivery through the construction phase and beyond the site’s commissioning.

The project has a high level of contracted revenues through a 10-year optimization agreement with SSE, alongside a 15-year capacity market agreement.

Coalburn 1 is one of three transmission-connected BESS assets currently being built by CIP in Scotland. The firm also has the Coalburn 2 and Devilla projects in Scotland. Collectively, this trio will have a total power capacity of 1.5 GW and will be able to store and supply the UK grid with 3 GWh of electricity.

CIP is growing its BESS portfolio across the entire UK, with a further 4.5 GW of BESS projects under development across Scotland and England.

Nischal Agarwal, CIP partner, welcomed Axa IM Alts partnering with it on its Coalburn 1 site. “The delivery of Coalburn 1, alongside CIP’s Coalburn 2 and Devilla construction projects, will improve the UK’s energy security, enable more low-cost renewables to be delivered, and will act to reduce costs for British consumers through enhanced system flexibility,” Agarwal added.

Mark Gilligan, head of infrastructure, Axa IM Alts, said the French firm’s investment in Coalburn 1 marked a significant milestone – namely its entry into the UK energy storage market. He described the commitment as supporting the transition to a zero-carbon economy.

“Battery storage infrastructure is critical to achieving national energy security and unlocking the full potential of renewable energy, and we look forward to working with experienced leaders of the sector to deliver resilient, long-term value for communities, our investors and the environment,” he added.

The takeover will happen upon commissioning, which is due in 2026. CIP claims the project will be Europe’s largest operational BESS.